Logan Paul is being sued in a class action lawsuit for asking people to buy NFTs but never launching the product, CryptoZoo, claiming it was a "rug pull"

2/3/2023

Logan Paul is being sued in a class action lawsuit for asking people to buy NFTs but never launching the product, CryptoZoo, claiming it was a "rug pull."

"Defendants promoted CryptoZoo's products using Mr. Paul's online platforms to consumers unfamiliar with digital currency products, leading to tens of thousands of people purchasing said products," the proposed class-action lawsuit filed Thursday reads.

"Unbeknownst to the customers, the game did not work or never existed, and Defendants manipulated the digital currency market for Zoo Tokens to their advantage," it said.

The YouTuber has since said he plans to implement a three-stage plan to try to recover buyers' lost funds.

In the first stage, Paul and CryptoZoo co-founder will burn all of their holdings of the project's native token to boost prices and ensure they have no further stake in the project.

Paul then plans to spend 1,000 ether tokens, valued at just under $1.7 million as of Friday, to buy NFTs from investors who want to abandon the CryptoZoo project.

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